Home Equity Line of Credit

Get the Flexibility You Need With Attractive HELOC Rates

Home equity lines of credit are a great way to pay for expenses as you need to. Also known as a HELOC, a home equity line of credit can pay for house projects, tuition, medical expenses and more. You can also use a home equity line of credit for debt consolidation, which means you’ll have just one payment to keep track of each month, often with a lower interest rate.

HELOC rates

Loan Type

APR* as low as

Home equity line of credit

3.25%

*APR refers to Annual Percentage Rate. APR effective as of 6/1/2016 and subject to change.

Are you consolidating debts with your home equity line of credit?

Nationwide Bank's loan department will contact you for the documents below. If you are applying with a co-applicant, their financial information will also be required. Please fax or email these documents to the number they provide.

Financial information

Home information

Most recent two consecutive paystubs (paystub date must be w/in 30 days of application date)

Most recent two consecutive years W-2 forms

Most recent two consecutive years personal federal tax returns with all schedules (signed and dated)

Social Security Income Award Letter (current or most recent year), if you receive Social Security

Pension award letter and/or documentation demonstrating all sources of retirement income, if you receive a pension

Signed verification of employment consent form (provided by Nationwide Bank)

2 years of employer information

Homeowners/condo/townhome insurance declaration page

Mortgage statement, if you want your taxes and insurance escrowed

Current year property tax bill, if you want your taxes and insurance escrowed

Flood insurance declaration page, if your property is in a flood zone

Master insurance policy for condominium association, if applicable

If you are self-employed or receive commission or rental property income, we will also need:

Most recent two years business federal tax returns with all schedules (signed and dated)

Year to date profit and loss statement and balance sheet

Copy of all K-1 schedules for S-Corp's and Partnerships showing on tax returns (on Schedule E)

After you are approved for and close your home equity line of credit, we’ll send you checks and a Visa® card. Use them as you would use a regular check or credit card to pay for your expenses. You’ll start making monthly interest payments on your home equity line of credit once you start using it.

You can draw funds from your HELOC for 10 years. If you have a balance at the end of the draw period, your HELOC becomes a 20-year loan with a principal and interest payment.

How is my payment determined?

For the first 10 years, the minimum payment is the amount of interest due. After that, your payment is based on 1.5% of the outstanding balance of your line of credit.

After I am approved for my HELOC, how quickly can I get my Visa?

You should get your Visa in the mail about 7-10 business days after you’ve closed your home equity line of credit.

Is it possible to pay off my home equity line of credit early?

Yes, you can pay off your HELOC early with no penalties. However, if you close your line within the first 24 months, you must reimburse us for your closing costs, up to $300.

Do I have to pay closing costs?

A maximum of $750 in closing costs are waived at closing.

How much HELOC can I apply for?

We offer home equity lines of credit from $10,000 to $750,000, based on the available equity in your home.

How is my equity determined?

Your equity is based on your current home’s value less the balance of any existing mortgage. The maximum loan to value (LTV) is 80%.

Should I get a HELOC or home equity loan?

Each home equity option comes with its own benefits, so the answer depends on what works better for you.

With a home equity loan, you get the entire loan amount at once. That works well if you know how much you need to spend. You’ll also pay a fixed interest rate with a home equity loan, which means you’ll know what your monthly payment will be.

With a home equity line of credit, you can use your funds as you need them. This is helpful if you don’t know exactly how much you’ll need. Because the amount you use may vary over the course of the HELOC, your monthly payment may change.

Don’t forget that Nationwide can provide you with the insurance you need to protect your home. Request a home insurance quote from Nationwide Insurance today.

Nationwide Bank NMLS #769318. To verify that a mortgage company or individual is authorized to conduct business in your state, visit the NMLS Consumer Access website.

Disclosed Annual Percentage Rate (APR) reflects a variable rate of Prime and assumes a loan to value ratio of 80% or less. Variable rate is subject to change monthly based on the highest US prime rate published in the money rates section of The Wall Street Journal on the 15th day of the preceding calendar month. All loans are subject to approval and your individual APR may vary based on your creditworthiness and loan to value. Total line of credit is calculated based on appraisal value of your home, not to exceed 80% of the appraised value of the property minus any existing mortgage balances. The maximum APR that can apply is 24.99% or the maximum amount permitted by law, whichever is less.

Insurance products offered through Nationwide Insurance are NOT insured by the FDIC or any federal government agency, nor are they guaranteed by, deposits of or obligations of Nationwide Bank.

[1] If the home equity loan or line is closed or paid off by the customer in the first 24 months, the customer must reimburse Nationwide Bank the lesser of $300 or actual closing costs waived.

[2] Please consult your tax advisor regarding the deductibility of interest of your home equity line of credit.

Debt consolidation information: The amount of savings realized with debt consolidation varies by loan. If you consolidate other bills and make only the minimum payment on the equity line, there may not be a savings over the entire term of the equity line since the equity line typically has a longer term than the bills being consolidated. Federally guaranteed student loans should not be considered because you will lose important federal benefits.

This credit line is interest-only during the 10-year draw period. After that, your monthly payment will increase, possibly substantially, even if the interest rate stays the same because you will be required to pay down the outstanding principal. Insurance must be carried on the real property securing the account, and flood insurance must be carried if the structure on the real property is located in a Special Flood Hazard Area.

Nationwide Mutual Insurance Company, Nationwide Mutual Fire Insurance Company, Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company and Nationwide Investment Services Corporation are affiliates of Nationwide Bank. The insurance products and services offered through these affiliates of Nationwide Bank are not insured by the FDIC or any federal government agency, nor are they guaranteed by, deposits of or obligations of Nationwide Bank. The products and services offered through Nationwide Investment Services Corporation are subject to investment risk, including possible loss of value.

Programs (including, without limit, fees, rates and features) are subject to change without notice.